SUNSTONE METALS LTD — Capital/Financing Update 2010

Aug 11, 2010

MARKET RELEASE

12 August 2010

Avalon Minerals Limited

TRADING HALT

The securities of Avalon Minerals Limited (the "Company") will be placed in pre-open at the request of the Company, pending the release of an announcement by the Company. Unless ASX decides otherwise, the securities will remain in pre-open until the earlier of the commencement of normal trading on Monday, 16 August 2010 or when the announcement is released to the market.

Security Code: AVI

of Heiner

Jill Hewitt Senior Adviser Issuers (Perth)

Level 2, 91 Havelock St West Perth WA 6005 PO 8ox 165 West Perth WA 6872 Tel: + 61 8 9322 2752 Fax: + 61 8 9322 2827

August 12, 2010

The Manager Companies Australian Stock Exchange Limited By Fax 08 9221 2020

REQUEST FOR TRADING HALT

Dear Sir

Further to our verbal advice this morning the Company confirms its request for a Trading Halt effective immediately.

In accordance with Listing Rule 17.1 the Company advises:

• The reason for the Trading Halt is due to the finalisation of a Capital Raising $\bullet$ .
• The Trading Halt shall last for 2 trading days or the announcement of the Capital $\blacksquare$ Raising
• The Trading Halt shall end following documentation and announcement of the Capital Raising
• The Company is not aware of any reason why the Trading Halt should not be U. granted.

Yours sincerely For and on Behalf of Avalon Minerals Ltd

⊧srríond J Kèliv Company Secretary